KEY HIGHLIGHTS
Rupee Strengthens Against US Dollar
Rupee strengthened by 8 paise to close at 83.79 against the US dollar.
It closed at 83.87 on Monday.
Source: Bloomberg
Sensex, Nifty End At Over Two-Week High Led By Finance, Tech Shares: Closing Bell
The Nifty extended its gains to a fourth consecutive session and the Sensex continued its rally after a one-day blip to record their highest closing since August 2 as shares of finance and IT companies led the gains.
The Nifty ended 0.51% or 126.20 points higher at 24698.85 and the Sensex closed 0.47% or 378.1 points higher at 80802.86. Intraday, both the indices rose 0.6%.
"With a bullish candle, the (Nifty) Index has filled its bearish gap zone and is now heading towards 24,870 (target of range breakout) with downside being shifted higher to 24,590," said Aditya Gaggar, director of Progressive Shares.
Shares of Reliance Industries Ltd., Larsen & Toubro Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd., and SBI Life Insurance Co. Ltd. contributed the most to the gains of Nifty.
While those of Bharti Airtel Ltd., ITC Ltd., Oil & Natural Gas Corp. Ltd., Adani Enterprises Ltd., and Apollo Hospitals Enterprises Ltd. weighed on the index.
Except Nifty Media and Nifty FMCG, all sectoral indices closed higher with Nifty PSU Bank rising the most.
Market breadth was skewed in favour of buyers. Around 2,394 stocks rose, 1,544 stocks declined, and 99 remained unchanged on BSE.
Broader markets ended higher on BSE. The BSE Midcap and Smallcap indices ended 0.98% and 0.52% higher, respectively.
On BSE, 19 sectors ended higher out of 20 with the BSE Financial Services emerging as the top performing sector. The BSE Capital Goods was the only sector which ended in negative.
Markets At Close
Nifty ends higher in fourth consecutive session
Sensex resumes uptrend after one-day blip
Both the indices closed at their highest levels since August 2
Nifty ends 0.51% or 126.20 points higher at 24698.85
Sensex ends 0.47% or 378.1 points higher at 80802.86
Broader indices also ended higher; Nifty Midcap 100 ended 0.84% up and Nifty Smallcap 250 rose 0.54%
Except Nifty Media and Nifty FMCG, all sectoral indices closed higher; Nifty PSU Bank rose the most
SBI Life and HDFC Life were the top Nifty gainers
SBI Life Jumps Over 5%
The stock was the top gainer among Nifty stocks.
Tech Mahindra To Sell 103 Acre-Land Parcel In Hyderabad
To sell 103 acres land parcel in Hyderabad to Mahindra University for Rs 535 crore
Source: Exchange filing
Granules India Arm Gets US FDA Nod For Oral Solution
Arm gets US FDA approval for Glycopyrrolate oral solution
Source: Exchange filing
US FDA Inspection At Marksans Pharma Goa Facility Ends
US FDA inspection at Goa facility ends with 'Voluntary Action Indicated' classification
Source: Exchange filing
IndusInd Bank Shares Gain On Getting RBI Nod For Mutual Fund Business
Shares of IndusInd Bank Ltd. gained 2.33% on Tuesday after the Reserve Bank of India granted approval to the bank for setting up a wholly owned subsidiary to undertake the asset management business of mutual funds.
Indian Cos Set To Spend $45-50 Billion In Capex Over Two Years, Says Moody’s
Oil & gas sector and RIL to account for 60% of this spending
Investments to increase vertical integration and achieve net zero targets will keep spending high
Infra spending, increasing energy consumption and rising demand for connectivity to support earnings
Source: Moody’s Ratings
CK Narayan To NDTV Profit
FIIs have now been pushed in the background
Money coming from SIPs has completely changed the game
Everybody is waiting for correction but all corrections have been bought into
Market went down on Yen carry trade, hence everyone started talking about it
Hindustan Zinc Board Approves Dividend
Board approves second interim dividend of Rs 19/share
To pay total dividend of Rs 8,028 crore for FY25
Source: Exchange Filing
Sequent Scientific Hits Two-Year High On Getting WHO Pre-Qualification Nod
Shares of Sequent Scientific Ltd. jumped over 11% to a two-year high on Tuesday after winning pre-qualification approval from the World Health Organization for an active pharmaceutical ingredient to treat parasite infection.
Defence Stocks Fall
Mazagon Dock fell the most among defence stocks as ICICI Securities maintains sell rating on the stock with a target of Rs 1,165, implying 73% downside from current levels.
Greaves Cotton Arm In Pact With River Mobility
Arm Greaves Finance in pact with River Mobility under 100% EV-focused lending platform evfin.
Source: Exchange Filing
Hi-Tech Pipes Hits Lifetime High On Winning Rs 105-Crore Order
Shares of Hi-Tech Pipes Ltd. hit their lifetime high on Tuesday after the company received orders worth Rs 105 crore for supplying electric resistance welded steel pipes to key customers in the renewable energy sector.
Ola Electric Falls After Hitting A New Record
Shares of Ola Electric Mobility Ltd. erased their morning gains after hitting a fresh highest level since its listing on Aug. 9 Tuesday.
Saraswati Saree Debuts At 25% Premium Over IPO Price
Shares of Saraswati Saree Depot Ltd. listed on the BSE on Tuesday at Rs 200 apiece, a premium of 25% over its issue price of Rs 160 per share. On the National Stock Exchange, the stock debuted at Rs 194 per share, marking a premium of 21%.
Zomato Shares Fall After Antfin Singapore Sold Stake Worth $556-Million
Shares of Zomato fell over 1% on Tuesday after about 2.2% equity stake changed hands as Antfin Singapore Holding Pte. proposed to offload stake.
About 20.7 lakh shares or 2.2% equity changed hands in 10 bunched trades, according to Bloomberg data.
Nifty Pharma Hits Record High
The Nifty Pharma index rose in the third consecutive session to record a new lifetime high of 22,346.45 today. Granules India and Mankind Pharma rose the most.
Nifty IT Hits Lifetime High
All constituents of the index rose with Coforge and Mphasis leading the gains. Shares of HCL Tech traded flat and those of TCS hit a fresh lifetime high. The index rose in the seventh consecutive session today, logging its best streak since seven sessions ended January 19, 2023.
KEI Industries Hits One-Month High After UBS Initiation
UBS Global Research started coverage on KEI Industries Ltd. as the company's earnings are compounding consistently because of its strong presence in wire and cables segment.
Coforge In Pact With Salesforce
In pact with Salesforce to launch innovative sustainability solutions
Source: Exchange Filing
Polycab Shares Jump After UBS Starts Coverage With 'Buy'
UBS highlighted the company as a prime beneficiary of the burgeoning electrification infrastructure sector.
The scrip rose as much as 4.04% to Rs 6,884 apiece, the highest level since August 1, 2024. It pared gains to trade 3.62% higher at Rs 6,855 apiece, as of 09:20 a.m. This compares to a 0.22 advance in the NSE Nifty 50 Index.
It has risen 24.69% on a year-to-date basis. Total traded volume so far in the day stood at 0.39 times its 30-day average. The relative strength index was at 57.69.
Out of 33 analysts tracking the company, 23 maintain a 'buy' rating, 6 recommend a 'hold,' and 4 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 5.5%.
Nifty, Sensex Open Higher As RIL, TCS Lead Gains
Benchmark equity indices opened higher after a flat close today as Reliance Industries and Tata Consultancy Services led gains.
At pre-open, the Nifty was at 24648.90, up by 0.44% or 107.75 points and the Sensex rose 0.36% or 285.89 points to 80722.73.
Technically, a narrow range of activity was seen after the market's initial gap, according to Shrikant Chouhan, head of equity research at Kotak Securities. "In our view, the broad market texture is still positive, but a fresh uptrend rally is possible only after breaking 24700/80900, above which the market may move up to 24950/81700," he said.
"On the flip side below 24500/80300 intraday selling pressure is likely to increase and indices may retest the levels of 24400-24350/80000-79800."
Shares of Tata Consultancy Services Ltd., Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., and UltraTech Cement Ltd. contributed the most to the gains.
While those of Oil & Natural Gas Corp. Ltd., Bharti Airtel Ltd., ITC Ltd., HCL Tech Ltd., and Power Grid Corp. Of India Ltd. weighed on the Nifty.
Except Nifty Realty, all sectoral indices opened higher with Nifty IT leading the gains.
Hi-Tech Pipes Gets Order Worth Rs 105 Crore
Gets order worth Rs 105 crore from renewable energy sector for supply of steel pipes
Source: Exchange Filing
Nifty, Sensex Higher At Pre-Open
At pre-open, the Nifty was at 24648.90, up by 0.44% or 107.75 points and the Sensex rose 0.36% or 285.89 points to 80722.73.
Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 6.86%.
It closed at 6.86% on Monday.
Source: Bloomberg
Rupee Opens Flat Against US Dollar
The rupee opened flat at 83.87 against the US dollar.
It closed at 83.87 on Monday.
Source: Bloomberg
Citi On BPCL
Opens 90-day positive catalyst watch
Target price at Rs 380 implies 11% upside
OMCs have underperformed Nifty in the last 6months
Underperformance due to refining and marketing margins, and elections
Factors of underperformance now reversing
FY25-26E earnings still around 15-20% ahead of consensus
Dividend yield of 4-5% supportive
Nomura On IndusInd
Retains Neutral Rating on IndusInd; target of Rs 1,580 implies 17% upside
RBI approval for asset management business
Co can now generate revenue as a ‘manufacturer’ of mutual funds
Distribution business is just 0.4% of PBT, significantly lower than peers
Views development as positive at the margin, but scale to take time
UBS on KEI Industries
Initiates 'Buy', target price of Rs 6,150, implying 40.8% upside
Highest presence among peers in cables and wires segment
Sees scope for market share gains in branded housing wires and cables
Believes ramp up of branded wires to drive returns and cash generation
Stronger balance sheet and improving brand strength to help expand product range
Expect topline and EBITDA CAGRs of 22% and 31% during FY25-27E
Estimate earnings CAGR of 31% between FY24-27E
Downside risks: Slower domestic infrastructure creation, delays in capex
Citi On M&M
Maintains 'buy' with target price of Rs 3,180 from 3340 earlier
New target implies 15% upside
Tougher terrain ahead for SUVs; tractors treading well
FY24 was the “year of SUVs” for M&M
FY25 is expected to see better momentum in tractor segment
SUV demand for the company has moderated vs our earlier expectations
Cut volume estimates for SUV segment, resulting in slight cuts in earnings estimates
Keep tractor estimates unchanged for now
Could be possible upside risks to tractor numbers on better than expected festive demands
Top pick in the sector would be Maruti Suzuki
UBS on Polycab India
Initiates coverage with 'buy' and target price of Rs 8,550, implying 27% upside
Major beneficiary of electrification infrastructure creation
Presence in 40% of the domestic electrification market, robust competitive positioning
Distribution-led export business model offers incremental growth potential
Growth-levered business model, highest investment among peers
Led by capacity expansion, ramp up in ad spends and B2B focus
Significant room to grow addressable market revenue share; 2nd largest to Havells
FMEG consumer pull is key, expect FMEG Profitability at 5%
Forecast revenue/earnings growth of 20%/23% in FY24-27
Motilal Oswal on India Consumer
Overweight stance on staple companies owing to favourable risk-reward dynamics and anticipated volume recovery
Maintains cautious stance on discretionary stocks; and positive view on jewellery companies
Expect that the volume improvement trajectory for staples will continue in FY25
Volumes aided by stable retail inflation, a healthy progress of the monsoon season, and government’s budgetary allocation towards boosting the rural economy
Paints weak discretionary demand and the changing competitive landscape are adversely affecting growth
Margins of innerwear companies were affected by increased discounts and volatile raw material prices
Liquor companies demand faced challenges despite the seasonality due to election-related restrictions and a lack of approvals for interstate transfers
For QSR’s pace of recovery is expected to be slow, which will likely keep operating margins under pressure
Optimistic about the jewellery sector and anticipate a continued rapid transition in consumer buying habits from informal/local to formalized channels
Top picks: HUL, GCPL, and Dabur Kalyan Jewellers and Titan
Citi On BPCL
Maintains 'buy' on Bharat Petroleum at Rs 333.2 target 14% upside
Opens 90-day positive catalyst watch on the stock
Lower chance of fuel rate cuts a positive sign for marketing margins
Expect gross refining margins to improve sequentially
Believe integrated margins will improve sharply over Q2-Q3FY25
Q3FY25 earnings to be boosted if govt announces compensation for LPG losses
FY25-26 earning estimates remain at 15-20%
UBS on India Consumer durables
Expects the current $8 billion segment to be worth $20 billion in FY30
Shifting global supply chain and incumbents' sizeable capacity should lift export revenue from $2 billion in FY24 to $5 billion in FY30
Revenue and EBITDA CAGRs for UBS's cable and wire coverage to rise 20%/25% in FY24-28E
Favourable supply-demand dynamics to benefit industry leaders
Top-line and margin expansions have driven a re-rating for the C&W segment
Valuations in line with the broader market and seemingly low near-term de-rating risks
Emkay On Kalpataru Projects
Maintains Buy with a target of Rs 1,550, implying 26% upside
Management Meet Takeaways
Positive on tendering environment across key verticals and geographies
FY25 growth guidance of 20%, Profit Before Tax margin of 4.5%-5%
Cashflow of INR 550cr on divestment of non-core assets and improving ROCE
Co is disciplined in order picking and has an impeccable execution track record
Suraj Estate Board Approves Fund Raise
Board approves raising of funds via issue of 56 lakh shares on preferential basis
Issue price of preferential issuance of shares at Rs 714/share
Board approves issuance of 13 lakh fully convertible warrants at issue price of Rs 750/share
Source: Exchange Filing
Global Cues
U.S. Dollar Index at 101.87
U.S. 10-year bond yield at 3.87%
Brent crude down 0.06% at $77.61 per barrel
Nymex crude down 0.50% at $74 per barrel
GIFT Nifty was flat at 24,653.00 as of 7:22 a.m.
F&O Cues
Nifty August futures up by 0.04% to 24,595 at a premium of 23 points.
Nifty August futures open interest down by 3%.
Nifty Bank August futures down by 0.27% to 50,485 at a premium of 117 points.
Nifty Bank August futures open interest up by 3%.
Nifty Options Aug. 22 Expiry: Maximum call open interest at 25,000 and maximum put open interest at 24,000.
Bank Nifty Options Aug. 21 Expiry: Maximum call open interest at 53,000 and maximum put open interest at 51,900.
Securities in ban period: Aarti Industries, Aditya Birla Fashion, Balrampur Chini Mills, Bandhan Bank, Birlasoft, Chambal Fertilisers & Chemicals, GNFC, Granules, Hindustan Copper, India Cements, IndiaMart InterMesh, LIC Housing Finance, Manappuram Finance, NMDC, PEL, PNB, RBL Bank, SAIL, and Sun TV.
Trading Tweaks
Ex/record dividend: Balkrishna Industries, IRB Infrastructure Developers, Titagarh Rail Systems, Dr Lal Path Labs, the Phoenix Mills, PI Industries, Rain Industries, Sun TV Network, Apar Industries, AIA Engineering, the South Indian Bank, and JK Paper.
Ex/record AGM: Titagarh Rail Systems, Apar Industries, The South Indian Bank, Vodafone Idea, JK Paper, Saregama India.
Ex/record buyback: AIA Engineering.
Moved out short-term ASM Framework: Mukka Proteins.
Bulk Deals
DCX Systems: NCBG Holdings Inc. sold 29.59 lakh shares (2.66%) at Rs 337.95 apiece. Neomile Growth Fund, Series I, bought 7.39 lakh shares (0.66%) at Rs 337.95 apiece and Upadhyaya Ajay Shiv Narayan bought 15 lakh shares (1.35%) at Rs 337.95 apiece.
Prudent Corporate Advisory Services: Rameshchandra Chimanlal Shah sold 6.12 lakh shares (1.47%) at Rs 2,450 apiece and Sanjay Rameshchandra Shah sold 4.12 lakh shares (0.99%) at Rs 2,450.05 apiece. On the other hand, Societe Generale bought 2.75 lakh shares (0.66%) at Rs 2450 apiece.
Ujjivan Small Finance Bank: Ardisia sold 1.7 crore shares (0.87%) at Rs 41.11 apiece.
Block Deals
Ethos: Bandhan Mutual Fund bought 3 lakh shares (1.22%) at Rs 3,346 apiece. Mahen Distribution Ltd. sold 1.6 lakh shares (0.65%) at Rs 3,346 apiece, and Master Capital Services Ltd. sold 1.4 lakh shares (0.57%) at Rs 3,346 apiece.
IPO offering
Interarch Building Products: The public issue was subscribed 3.2 times on day 1. The bids were led by non-institutional investors (7.85 times), retail investors (2.76 times), and qualified institutional investors (0.27 times).
Listing day
Saraswati Saree Depot: The company's shares will debut at an issue price of Rs 160 on the stock exchanges on Tuesday. The Rs 160-crore IPO was subscribed 107.52 times on its third and final day. The bids were led by non-institutional investors (358.65 times), institutional investors (64.12 times), and retail investors (61.88 times).
Stocks to Watch
Tata Motors: The company sets Sept. 1 as the record date for determining shareholders eligible for DVR share swaps.
Bajaj Auto: The company will make a Rs 211 crore provision in the second quarter due to the withdrawal of the indexation benefit and the change in tax rate.
IndusInd Bank: The bank received the RBI's nod for undertaking mutual fund business via a new subsidiary.
HCL Technologies: Shiv Walia will replace Prateek Aggarwal as the chief financial officer, effective Sept. 6.
Vedanta: The company’s shareholding in Hindustan Zinc was reduced to 63.42% after an offer for sale.
Hazoor Multi Projects: The company emerged as the lowest bidder for Maharashtra State Infra Development Corp.'s project worth Rs 274 crore.
Share India Securities: The company has rescinded its investment by acquiring equity shares of DSM Fresh Foods Ltd., considering the negative feedback received from the company's investors and stakeholders.
Poly Medicure: The company opened its qualified institutional placement and set the floor price at Rs 1,880.69 per share.
Sequent Scientific: The company received prequalification approval from the World Health Organisation for albendazole, an active pharmaceutical ingredient.
Hi-Tech Pipes: The company approved raising Rs 600 crore via QIP or other means.
Olectra Greentech: The company's stake in a special purpose vehicle for executing a MSRTC contract falls to 1% from the initial 34%.
Motilal Oswal Financial Services: The company approved the proposal to raise Rs 200 crore through non-convertible debentures on a private placement basis.
GIFT Nifty Trades Above 24,600
Share indices in Asia-Pacific region were trading higher during early trade on Tuesday as market participants await China's loan prime rate and the Reserve Bank of Australia's August policy minutes.
The Nikkei 225 was 1.36% higher at 37,898.52, and the S&P 500 was 0.97% higher at 5,608.25 as of 6:15 a.m.
US stocks rose for the eighth consecutive session, marking the longest winning streak of 2024, as investors anticipate that the Federal Reserve may soon signal a shift towards reducing interest rates.
On Monday, the S&P 500 and Nasdaq Composite settled 0.97% and 1.39% higher, respectively. The Dow Jones Industrial Average ended 0.58% higher.
Brent crude was trading 0.18% lower at $77.52 per barrel as of 06:18 a.m. The Bloomberg Spot Gold was 0.07% higher at $2,506.06 as of 06:19 a.m.
GIFT Nifty's August futures contract was trading flat at 24,652.50 as of 7:06 a.m.
The Indian benchmark indices ended mixed on Monday as the NSE Nifty 50 closed 31.50 points or 0.13%, higher at 24,572.65, and the S&P BSE Sensex settled 12.16 points or 0.02%, lower at 80,424.68.
Overseas investors turned sellers of Indian equities on Monday after a session of buying. Foreign portfolio investors offloaded stocks worth Rs 2,667.5 crore, while domestic investors stayed net buyers for the 11th consecutive session and bought equities worth Rs 1,802.9 crore, according to provisional data from the National Stock Exchange.
The Indian rupee strengthened by 8 paise to end at 83.87 against the US dollar.
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